Calculating the financial result on the Goods Inventory account: The historical and methodological aspect. Part 1

Abstract

Subject. This article examines the problem of identifying the financial result on the Goods Inventory account. For the first time, the procedure for determining the financial result on the Goods Inventory account was described by Luca Pacioli in the twenty-seventh chapter of his Treatise on the Accounts and Records (Particularis de Computis et Scripturis) in 1494. It raises many questions. Objectives. The article aims to reconstruct the procedure for identifying the financial result on the account Goods Inventory on the basis of medieval treatises on accounting. It also aims to prove that medieval treatises on accounting published after the publication of Luca Pacioli's Treatise on the Accounts and Records are of independent scientific value. Methods. For the study, I used combinations of analysis and synthesis, induction and deduction, and historical and logical research methods. Results. Based on the study of the works of medieval authors, the article reconstructs the procedure for determining the financial result on the account Goods Inventory and proves that medieval works on accounting, published before the end of the 16th century, had independent scientific significance. Relevance. The results obtained can be applied to explain the nature of the financial result, and when defining the financial result and developing an accounting methodology for identifying it.